Corrective Action Plans

Finding 1208424 (2025-002)

Material Weakness 2025

KY

Eligibility HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that all documents related to recertification are acquired. Additionally, tenant files should be reviewed to ensure all supporting documentation is ...

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that all documents related to recertification are acquired. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Action Taken: The management of Thompson-Woodlief Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that tenant recertifications are documented in accordance with HUD guidelines and that proper documentation is maintained within the tenant files.

View Audit 399382

Finding 1208423 (2025-006)

Material Weakness 2025

Jude's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure that all withdrawals from the reserve for replacement agree to the amount approved by HUD. The Organization should return the excess funds withdrawn to the reserve. Action Taken: The management of Jude’s Place Apartments...

Recommendation: The design of the current controls should be reviewed to ensure that all withdrawals from the reserve for replacement agree to the amount approved by HUD. The Organization should return the excess funds withdrawn to the reserve. Action Taken: The management of Jude’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all withdrawals from the reserve for replacement agree to the amount approved by HUD. The excess funds withdrawn were returned to the reserve in May 2025.

View Audit 399381

Finding 1208421 (2025-004)

Material Weakness 2025

Jude's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure that information used on Form 50059 in the calculation of tenant payments should agree to the supporting documentation maintained in tenant files. Overpayment of subsidy should be repaid to HUD. Action Taken: The managem...

Recommendation: The design of the current controls should be reviewed to ensure that information used on Form 50059 in the calculation of tenant payments should agree to the supporting documentation maintained in tenant files. Overpayment of subsidy should be repaid to HUD. Action Taken: The management of Jude’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that information used on Form 50059 in the calculation of tenant payments should agree to the supporting documentation maintained in tenant files. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billings.

View Audit 399381

Finding 1208420 (2025-003)

Material Weakness 2025

Jude's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before processing. The Organization should repay the overpayment of subsidy to HUD. Action Taken: The management of Jude’s Place Apartments, Inc. accepts the recommen...

Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before processing. The Organization should repay the overpayment of subsidy to HUD. Action Taken: The management of Jude’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all adjustments to monthly billings are reviewed to ensure they are processed correctly. Overpayment of subsidy will be repaid to HUD through adjustments to monthly billings.

View Audit 399381

Finding 1208419 (2025-002)

Material Weakness 2025

Jude's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting docu...

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will provide timely notice of annual recertifications to all tenants in accordance with HUD guidelines to ensure process is completed on time and will ensure all supporting documentation is maintained in tenant files.

View Audit 399381

Finding 1208418 (2025-004)

Material Weakness 2025

Edsil's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before submission. The Organization should repay the overpayment of subsidy to HUD. Action Taken: The management of Edsil’s Place Apartments, Inc. accepts the recomme...

Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before submission. The Organization should repay the overpayment of subsidy to HUD. Action Taken: The management of Edsil’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all adjustments to monthly billings are reviewed before submission.. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billings.

View Audit 399380

Finding 1208417 (2025-003)

Material Weakness 2025

Edsil's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure proper vacancy dates are utilized in the event of a deceased tenant. The overpayment of subsidy received on behalf of the deceased tenant should be repaid to HUD. Action Taken: The management of Edsil’s Place Apartments,...

Recommendation: The design of the current controls should be reviewed to ensure proper vacancy dates are utilized in the event of a deceased tenant. The overpayment of subsidy received on behalf of the deceased tenant should be repaid to HUD. Action Taken: The management of Edsil’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that move-outs as a result of a deceased tenant are processed in accordance with HUD guidelines. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billings.

View Audit 399380

Finding 1208416 (2025-002)

Material Weakness 2025

Edsil's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting docu...

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Action Taken: The management of Edsil’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will provide timely notice of annual recertifications to all tenants in accordance with HUD guidelines to ensure process is completed on time and will ensure all supporting documentation is maintained in tenant files.

View Audit 399380

Finding 1208414 (2025-003)

Material Weakness 2025

Adams-Bodine Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure adjustments made to the monthly billings are accurate before submission. Excess subsidy payments should be repaid to HUD. Action Taken:The management of Adams-Bodine Apartments, Inc. accepts the recommendation of Deming,...

Recommendation: The design of the current controls should be reviewed to ensure adjustments made to the monthly billings are accurate before submission. Excess subsidy payments should be repaid to HUD. Action Taken:The management of Adams-Bodine Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all adjustments to monthly billings are reviewed for accuracy before submission. Excess subsidy received will be repaid to HUD through adjustments to monthly billings.

View Audit 399378

Finding 1208413 (2025-002)

Material Weakness 2025

Adams-Bodine Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting ...

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Action Taken: The management of Adams-Bodine Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will provide timely notice of annual recertifications to all tenants in accordance with HUD guidelines to ensure the process is completed on time and will ensure all supporting documentation is maintained in tenant files.

View Audit 399378

Finding 1208396 (2025-003)

Material Weakness 2025

Freeman Apartments, Inc. Hud Project No. 031 Hd 066

NJ

HUD Housing Programs

Section 811 – Capital Advances, Section 811 – Project Rental Assistance Recommendation: The Organization should comply with HUD requirements and wait until receipt of HUD approval before withdrawing any funding from the Reserve for Replacement account. Explanation of disagreement with audit finding:...

Section 811 – Capital Advances, Section 811 – Project Rental Assistance Recommendation: The Organization should comply with HUD requirements and wait until receipt of HUD approval before withdrawing any funding from the Reserve for Replacement account. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management agrees with the finding and will take steps to adjust the budget and ensure there is proper approval before withdrawing and funds from the R&R account moving forward. Name(s) of the contact person(s) responsible for corrective action: Phil Pasmanik, Treasurer Planned completion date for corrective action plan: 03/31/2026

View Audit 399366

Finding 1208394 (2025-002)

Material Weakness 2025

Freeman Apartments, Inc. Hud Project No. 031 Hd 066

NJ

HUD Housing Programs

Section 811 – Capital Advances, Section 811 – Project Rental Assistance Recommendation: The Organization should review its budgeting process to ensure compliance with HUD funding requirements for the reserve for replacement account. Additionally, they should implement regular monitoring to prevent f...

Section 811 – Capital Advances, Section 811 – Project Rental Assistance Recommendation: The Organization should review its budgeting process to ensure compliance with HUD funding requirements for the reserve for replacement account. Additionally, they should implement regular monitoring to prevent future underfunding. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management agrees with the finding and will take steps to adjust the budget and ensure the Reserve for Replacement account is adequately funded moving forward. Name(s) of the contact person(s) responsible for corrective action: Phil Pasmanik, Treasurer Planned completion date for corrective action plan: 03/31/2026

View Audit 399366

Finding 1208307 (2025-001)

Material Weakness 2025

Hartford Village

MI

HUD Housing Programs

Agree with the facts and circumstances described above. Subsequent to year end, the Organization will be opening a separate security deposit account to hold the cash.

View Audit 399329

Finding 1208306 (2025-001)

Material Weakness 2025

Benjamin Hershey Manor

IA

HUD Housing Programs Questioned Costs Procurement, Suspension & Debarment

Name of auditee: Benjamin Hershey Memorial Convalescent Home HUD auditee identification number: 074-11175 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Jessica Ward Position: Chief Financial Officer Telephone number: 402...

Name of auditee: Benjamin Hershey Memorial Convalescent Home HUD auditee identification number: 074-11175 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Jessica Ward Position: Chief Financial Officer Telephone number: 402-333-7373 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2025-001: Comments on the Finding and Each Recommendation: The Corporation did not provide HUD with a completed annual financial report by March 31, 2026, as required by HUD. Pursuant to the terms of the Regulatory Agreement, within ninety (90) days following the end of each fiscal year, the Corporation shall provide a complete annual financial report based upon an examination of the books and records of the Community prepared in accordance with the requirements of HUD and certified by a Certified Public Accountant or other person acceptable to the Commissioner. As a result, the Corporation was not in compliance with the Regulatory Agreement. The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Action(s) taken or planned on the finding: The audit report as of and for the year ended June 30, 2025 has been submitted to HUD. No further action is required.

View Audit 399327

Finding 1208302 (2025-004)

Material Weakness 2025

City of Cambridge Massachusetts

MA

Subrecipient Monitoring Questioned Costs Procurement, Suspension & Debarment § 200.303

Repeat finding 2024-005 The City will establish policies, procedures and internal controls to ensure that all subrecipient CAPER reports are reconciled to the IDIS system and submitted to HUD within 90 days of year end.

View Audit 399326

Finding 1208273 (2025-004)

Material Weakness 2025

Trilogy, Inc.

IL

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring § 200.303

Special Tests and Provisions – Assistance Listing No. 14.267 Recommendation: We recommend program managers verify that rent reasonableness checklists and certifications are fully completed by HUD staff. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. ...

Special Tests and Provisions – Assistance Listing No. 14.267 Recommendation: We recommend program managers verify that rent reasonableness checklists and certifications are fully completed by HUD staff. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will implement a supervisory review process requiring program managers to review and formally sign off on rent reasonableness checklists and certifications. Staff will receive refresher training on completion requirements, and management will periodically review files to ensure documentation is complete and properly approved. Name(s) of the contact person(s) responsible for corrective action: Jamie Rotter Planned completion date for corrective action plan: 6/30/2026

View Audit 399300

Finding 1208268 (2025-001)

Material Weakness 2025

Good Shepherd Homes, Inc.

MN

HUD Housing Programs Questioned Costs Cash Management

United States Department of Housing and Urban Development Good Shepherd Homes, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 01, 2025 - December 31, 2025 The findings from the schedule of findings and questioned costs are d...

United States Department of Housing and Urban Development Good Shepherd Homes, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 01, 2025 - December 31, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS United States Department of Housing and Urban Development SIGNIFICANT DEFICIENCY 2025-001 Section 223(f) Mortgage Insurance for the Refinance of Existing Multifamily Housing Projects Federal Assistance Listing #14.155 Recommendation: We recommend that management deposit the remaining $770 to the residual receipts account as soon as possible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management deposited the $770 into the residual receipts account on March 12, 2026. Management will ensure moving forward that if the Project has surplus cash, the correct amount will be deposited into the residual receipts account. Name(s) of the contact person(s) responsible for corrective action: Krista Martini, Chief Financial Officer Planned completion date for corrective action plan: March 12, 2026 If the United States Department of Housing and Urban Development has questions regarding this plan, please call Krista Martini at 320-259-3490.

View Audit 399272

Finding 1208249 (2025-002)

Material Weakness 2025

B'nai B'rith Covenant House of Peoria Inc. II 072-Ee038

IL

HUD Housing Programs

Section 202 - Supportive Housing for the Elderly Mortgage Financing– Assistance Listing No. 14.157 Recommendation: We recommend the funds over the FDIC limit be collateralized or insured, or invested at a bank with an approved HUD accepted rating. Explanation of disagreement with audit finding: Ther...

Section 202 - Supportive Housing for the Elderly Mortgage Financing– Assistance Listing No. 14.157 Recommendation: We recommend the funds over the FDIC limit be collateralized or insured, or invested at a bank with an approved HUD accepted rating. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will monitor funds held at Busey closely and exercise one of the following two options mentioned above. Name(s) of the contact person(s) responsible for corrective action: Jeff Cottingham, Property Manager Planned completion date for corrective action plan: 2026

View Audit 399220

Finding 1208237 (2025-001)

Material Weakness 2025

Tomball Pines, Inc.

TX

HUD Housing Programs

Audit Finding 2025-001: Per the HUD management fee schedule for owners and agents, the basic rate for management fees is $50 per unit per month (pupm). The Project qualifies for add-on fees of $8 pupm for having 16 to 30 units in property and $3 pupm for being a Sec 811 property with the total cap o...

Audit Finding 2025-001: Per the HUD management fee schedule for owners and agents, the basic rate for management fees is $50 per unit per month (pupm). The Project qualifies for add-on fees of $8 pupm for having 16 to 30 units in property and $3 pupm for being a Sec 811 property with the total cap of management fees at $61 pupm. - Management fees for the year ended December 31, 2025 were paid in excess of the monthly pupm cap. Response: Management miscalculated the management fees for the year ended December 31, 2025, and hence, fees were paid in excess of the cap by $4,183. The excess fees were paid back to the Project on March 20, 2026. - Name and Title of contact person responsible for corrective action: Steve Colella, Making a Difference in Property Management, LLC, Management Agent - 6800 Park Ten Blvd, Ste 184-W, San Antonio, TX 78213

View Audit 399188

Finding 1208235 (2025-003)

Material Weakness 2025

Palo Duro II Inc.

OK

Special Tests & Provisions Questioned Costs HUD Housing Programs

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. The hazard insurance policy for the project property was in force; however, due to an administrative oversight during policy renewal, the required standard mortgagee clause identi...

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. The hazard insurance policy for the project property was in force; however, due to an administrative oversight during policy renewal, the required standard mortgagee clause identifying the U.S. Department of Housing and Urban Development (HUD) as mortgagee/loss payee was not reflected in the insurance documentation maintained on file. Corrective Action Plan: Management will work with the insurance broker to obtain the required endorsement naming the U.S. Department of Housing and Urban Development (HUD) as mortgagee/loss payee and will implement a review process to ensure required endorsements are verified upon future policy renewals. Responsible Official: Stacey Ninness, President/CEO Anticipated Completion Date: Management anticipates the policy endorsement will be completed within 60 days of the audit report date.

View Audit 399180

Finding 1208234 (2025-002)

Material Weakness 2025

Palo Duro II Inc.

OK

HUD Housing Programs Special Tests & Provisions

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. Management determined that the noncompliance resulted from insufficient internal controls and monitoring procedures related to HUD-specific banking and cash management requirement...

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. Management determined that the noncompliance resulted from insufficient internal controls and monitoring procedures related to HUD-specific banking and cash management requirements. Specifically, formal controls were not in place to ensure required account characteristics were reviewed and confirmed at account setup. Corrective Action Plan: Management will transition the project funds account to a compliant, interest-bearing account in accordance with HUD requirements. Management will also implement procedures to ensure that Section 811 revenues are deposited only into compliant accounts going forward. Responsible Official: Kimberly Burt, Chief Financial Officer Anticipated Completion Date: Management anticipates the bank account transition will be completed within 60 days of the audit report date.

View Audit 399180

Finding 1208233 (2025-001)

Material Weakness 2025

Palo Duro II Inc.

OK

HUD Housing Programs Internal Control / Segregation of Duties Material Weakness § 200.512

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. In prior years, the Single Audit Reporting Package was not submitted to the Federal Audit Clearinghouse due to an internal misunderstanding of management’s responsibility for subm...

Views of Responsible Officials and Planned Corrective Actions: Management Response: Management concurs with the finding. In prior years, the Single Audit Reporting Package was not submitted to the Federal Audit Clearinghouse due to an internal misunderstanding of management’s responsibility for submission. With the engagement of a new audit firm, management has clarified these responsibilities. Corrective Action Plan: Management will formally designate responsibility for the timely submission of the Single Audit Reporting Package to a specific member of the finance department. In addition, management will implement a review process to confirm submission and receipt acknowledgment from the Federal Audit Clearinghouse. Responsible Official: Kimberly Burt, Chief Financial Officer Anticipated Completion Date: Management anticipates the filing will be completed within 30 days of the audit report date.

View Audit 399180

Finding 1208228 (2025-001)

Material Weakness 2025

Robertsville Apartments, Inc.

TN

HUD Housing Programs Questioned Costs

Management will request a rent increase when the property is eligible and budget for monthly tax and escrow deposits to prevent future shortfalls in escrow cash.

View Audit 399172

Finding 1208227 (2025-001)

Material Weakness 2025

Clinch River Apartments, Inc.

TN

HUD Housing Programs Questioned Costs

Corrective Action Plan: Management will request a rent increase when the property is eligible and budget for monthly tax and escrow deposits to prevent future shortfalls in escrow cash.

View Audit 399170

Finding 1208215 (2025-001)

Material Weakness 2025

Valentine Good Samaritan Hsg Dba Prairie Estates 103-Ee015

CA

HUD Housing Programs

Management will make the delinquent deposit to the replacement reserve of $1,800 and establish transfers for the monthly deposit amount.

View Audit 399147

Corrective Action Plans

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